Dear Sirs,
With reference to Example 1 under the Employment Benefits lecture, the $6m benefits paid out is deducted from the Pension Asset as well as the Pension Liability. I was wondering how the double entry works with this $6m, as there is no mentioning of this $6m as a cash outflow in the lecture?
CR Asset - $6m
DR Liability - $6m
CR Cash - $6m??
Thanks and Regards,
Tim
Ask the Tutor ACCA SBR
Defined Benefit Schemes
1y ago#1Journal - Dr Liability 6 Cr Asset 6
No impact on company cash (it is the pension scheme, not the company, that makes the payment)
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